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Federal Act
on the Amendment of the Swiss Civil Code
(Part Five: The Code of Obligations)

Art. 316

III. In­solv­ency of the bor­row­er

 

1 The lender may re­fuse to hand over the fixed-term loan if the bor­row­er be­comes in­solv­ent after en­ter­ing in­to the con­tract.

2 The lender has the right to re­fuse de­liv­ery even if in­solv­ency oc­curred be­fore the con­tract was con­cluded but he only sub­sequently be­came aware of it.